Mortgage Applications Decline in the Week Ending November 1st, Marking Sixth Consecutive Drop

According to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending Friday, November 1st, the Market Composite Index—a measure of mortgage loan application volume—decreased 10.8% on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index declined 12.0% compared with the previous week.

The Refinance Index decreased 19.0% from the previous week but was 48.0% higher than the same week one year ago.

The seasonally adjusted Purchase Index decreased 5.0% compared to one week ago. The unadjusted Purchase Index decreased 7.0% compared with the previous week but was 2.0% higher than the same week one year ago.

Commenting on the results of this week’s survey, MBA Vice President and Deputy Chief Economist Joel Kan said:

“Ten-year Treasury rates remain volatile and continue to put upward pressure on mortgage rates. The 30-year fixed rate last week increased to 6.81%, the highest level since July. Applications decreased for the sixth consecutive week, with purchase activity falling to its lowest level since mid-August and refinance activity declining to the lowest level since May. The average loan size on a refinance application dropped below $300,000, as borrowers with larger loans tend to be more sensitive to any given changes in mortgage rates.”